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Thursday 31 March 2011

Vodafone pays $5 bn to buy out India partner Essar


British communications giant Vodafone Group announced it had paid $5 billion to buy out its Indian partner Essar in their mobile phone joint venture.
British communications giant Vodafone Group announced it had paid $5 billion to buy out its Indian partner Essar in their mobile phone joint venture.

AFP - British communications giant Vodafone Group announced Thursday it had paid $5 billion to buy out its Indian partner Essar in their mobile phone joint venture.

The deal will result "in a total cash payment of $5 billion" to the Essar Group and "final settlement is anticipated to be no later than November 2011," Vodafone said in a statement.

It added that the Essar Group has exercised its option to sell its stake in Vodafone Essar, as India's third-largest mobile phone company is known in India.

Vodafone had a pact with the Essar Group that gave the Indian firm an option to sell its stake to the British-based company for $5 billion.

The deal will give Vodafone 75 percent control of Vodafone Essar.

Vodafone bought a 67 percent stake in Hutchison Essar for $11 billion in 2007.

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